Choosing the Best Funeral Home Loan Program

Operating a business, especially a funeral home, is certainly not an easy task. When seeking a small business loan, funeral home owners, cremation professionals, and those in the death care industry in general may find that obtaining traditional financing is not always an easy process. Unfortunately, COVID and the recent omicron variant have caused a nationwide unprecedented number of deaths. This pandemic has also severely affected the economy, making banks more reluctant to lend. However, your business may also be experiencing an unexpected increase in demand for its services, which in turn requires business funding to fuel its growth.

GoKapital has knowledgeable loan consultants that can assist your funeral home business obtain the best business loan it needs. Whether you're seeking financing for hiring new staff, marketing and advertising, or general expansion, we are here to make the lending process simple, so that you can focus on operating your business. We have loan options that can fund within 24 hours and require no credit score minimum, and also have programs with rates as low as 6% that require no collateral and fund within a week (for those with strong credit history). We understand every business has a different financial situation, which is why we offer a our variety of loan programs to funeral homes.

Banks, credit unions, and conventional lending sources in general will ask for significant documentation and take months to render a decision. With GoKapital, our loan consultants take a consultative approach to identify the ideal financial product for your funeral business, and can have you approved and funded within a matter of days (or hours in some cases). Please find below more information on some of the loan options we have for funeral homes.

The Best Business Loans for Funeral Homes

Long-Term Business Loans for Funeral Homes

Long-term loans are always the most desirable as they offer the longest repayment terms, typically from 2 to 7 years. Long-term loans are a lump sum provided upfront with an interest rate starting at 7%, with monthly payments over a fixed repayment period.

These loans require high credit standards for established funeral home businesses with at least two years in business in the funeral home industry and a significant amount of paperwork for approval.


  • Low interest rates starting at 7%
  • Term loans from 2 to 7 years to repay
  • Accommodates a larger loan amount
  • Monthly payments

Merchant Cash Advance for Funeral Homes

Merchant cash advances (also now as Future Receivables Purchase and Sale Agreements) provide an upfront lump sum of money in exchange for a fixed percentage of the businesses’ future sales. Repayment is typically made daily or weekly.

Either ACH payments auto deducted from a business’s bank account, or the percentage is taken out of future credit card sales until the payback obligation is met. Terms are expressed as a future sale, so you are given a fixed amount and then responsible for paying back a more significant amount through a fixed percentage of future sales. The difference between the amount given and the amount paid back to complete the agreement is your fixed cost.

The estimated time to repay is typically 6 to 18 months, but there are no term limits as the repayment is based on future sales, and this product is not considered a term loan.

Benefits of Merchant Cash Advances for Funeral Homes:

  • Flexible repayment terms attached to future sales
  • Excellent to poor credit score considered
  • Provides funds to owners with sub-prime credit
  • Limited documentation required

Short Term Small Business Loan for Funeral Homes

Short-term loans are term loans that provide a fixed amount of money, repaid over terms of 6 to 18 months. When approved, you get a fixed amount for a set payback amount. The difference between is the cost, with a fixed payment auto-deducted from your bank account monthly, bi-weekly, weekly, or in some cases daily out of the bank account.

Limited paperwork is required, with only a 1-page application and bank statements. The credit requirements for a short-term loan are more lenient than that of banks or traditional term loans due to the reduced risk.

Benefits for Short Term Business Loans:

  • Excellent to poor credit score considered
  • Loan amount as little as $10,000 up to $500,000
  • Repayment terms are 6 to 18 months to repay
  • Lower monthly or annual revenue requirements than those of traditional loans
  • Fast and simple application process with the same day to next day financing
  • Limited documentation required

Business Line of Credit for Funeral Homes

A business line of credit is a small business financing option that offers a flexible feature that a short-term loan does not. It works like a credit card in that it is a revolving credit line and allows you to draw money out and then repay at any time with you only paying principal and interest on your outstanding balance.

Lines of credit have a credit limit that you cannot exceed and is set at the time of consummation. Business lines of credit are not considered term loans but revolving lines of credit.

Highlights of a Line of Credit:

  • Ability to draw money at any time from lines of credit
  • Allows borrowers to spend the money, repay it, and spend it again
  • Principal and interest rates starting at 5% for lines of credit
  • Lower costs and fees than most other financing products


Small BusinessAdministration [SBA]

The U. S. Small Business Administration (SBA) is a federal government agency headquartered in Washington DC that provides resources, programs, guidelines, and small business loan guarantees to approved SBA Lenders to issue loans to small businesses.

The Small Business Administration’s (SBA) mission is to help American enterprises to start, build, and grow their businesses successfully. The SBA is not a lender. The Small Business Administration provides a guarantee that gives the approved SBA lender the ability to take on the risk of lending and decisions under SBA term’s that they would not ordinarily do so on their own and has all rights reserved for any recourse need.

SBA loan application processes can be lengthy, but with the help of an experienced, SBA-approved lender to help your funeral home business through the applications process so the Small Business Administration application package can be a smooth and efficient experience. Some loan products require commercial real estate as collateral.

SBA Product Overview:

Loan Amount Limits: Up to 10 million
Interest Rates: Starting at 3.50%, treasury index plus 1% to 2.5%
Loan Terms: 3 to 25 years
Fees: Origination fees 0% to 3%
Payments: Fixed monthly
Credit: Good to excellent credit score required
Application Process: SBA loan application, business assets, and numerous financial statements

U. S. Small Business Administration Loan Programs:

SBA Standard 7(a) – SBA loan 7(a) is the SBA’s primary program is designed to provide financial assistance to businesses with a good track record. This loan is used mainly in the funeral home industry for working capital, expansion, and business acquisitions.

SBA 504 – The SBA 504 Loan is a small business term loan and a powerful economic development loan program that provides businesses another avenue source for funding while promoting economic development and equity. SBA 504 is typically for significant capital needs like real estate transactions.

The use of proceeds from the SBA 504 Loan must be used for fixed assets such as construction, owner-occupied commercial property, or mixed-use real estate. Common uses for SBA 504 loans include; repair facilities, land improvements (and certain soft costs), growth, and expansion, or can also be used to refinance existing debt on your small business.

SBA Disaster Small Business Loan Program – SBA Economic Injury Disaster Loans (EIDL) – This type of SBA loan assists small businesses after natural disasters like tornadoes, wildfires, or floods, and also when Coronavirus (COVID -19) was declared a nationwide health emergency. Congress provides small businesses with access to relief options through this SBA loan for emergency funding.

SBA Paycheck Protection Program (PPP) – The Small Business Administration (SBA) has established the SBA Paycheck Protection Program (PPP loan) in response to COVID-19. This is one of SBA’s relief options that provides loans to small businesses affected by the Coronavirus (COVID-19) crisis and needs financial help.

Loans For Funeral HomesHAVE ANY QUESTIONS?

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